So I have a friend who has been divorced over a year now. She moved out about 5 years ago, her ex-husband is still living in the house. He hasn't payed in at least 4 years so some day the house will in theory be taken to sherrifs sale. The house is woefully upside down and there is no way her or her husband could get it back to current. She realizes she will have a foreclosure on her record...her concern is, she wants them to just take it so that her 7 year clock at least starts. She feels like her 7 years is up to 11 years and continuing to grow everyday her ex lives in the place and the bank doesn't take the home. Is there anything at all she can do ?
Well, you can't force a bank to foreclose. But, waiting periods for FHA are 2 years from BK, 3 years from foreclosure/short sale. Conventional is 3 years from BK, 7 years from foreclosure. With conventional, once you do a BK, a foreclosure or short sale does not reset the clock, the BK guidelines apply.
I actually was thinking deed in lieu but also figured it was a long shot, one I would at least attempt and will advise her to investigate. Thanks for the idea. Sort of a purgatory for her. Once she explained the details I thought, wow that's a tough spot, and I bet a bunch divorced couples could be in a similar situation. She is willing to accept responsibility but the thought of the years not starting for possibly another few years is a bit harsh. She's ready to move on, has a good job etc, but can't really hit the reset button.
You can't do a DIL unless all parties to the transaction are willing to participate and if there are any other liens, forget about it.
Can't push the process. Nothing can be done to fast track the process for a foreclosure. The best thing short of a foreclosrue is a short sale, assuming again, all parties to the transaction are willing to participate.
@Craig, no that's not possible. There is no such thing as "Deed in Lieu'ing" someone's portion of the property and releasing them from the debt.
Yes you do want this over, so you can get your credit back on track.. You have to talk to the EX and see what he wants, he is most likely staying there because of free rent. There are ways to motivate him.